The IFRS Foundation and the Taskforce on Nature-related Financial Disclosures (TNFD) have formalized their partnership through a Memorandum of Understanding (MoU), reinforcing their commitment to integrating high-quality nature-related information into global capital markets

Strategic Alignment

The International Sustainability Standards Board (ISSB)—an arm of the IFRS Foundation—will incorporate TNFD recommendations into its sustainability standards, including the ongoing BEES research project (Biodiversity, Ecosystems, and Ecosystem Services). This alignment aims to enhance nature-related risk reporting, addressing the evolving needs of global investors.

Market-Driven Collaboration

The MoU formalizes years of knowledge-sharing and research alignment between ISSB and TNFD. Both organizations are committed to reducing fragmentation in sustainability reporting, ensuring a more cohesive approach to disclosure frameworks.

Investor-Ready Insights

Enhanced disclosures will provide investors with consistent, decision-useful data on biodiversity, ecosystems, and nature-related risks, improving visibility into environmental dependencies and financial impacts.

Since TNFD’s inception in 2021, ISSB has played a key role as a Knowledge Partner. ISSB’s SASB sector classifications, CDSB biodiversity guidance, and IFRS S1 have informed TNFD’s recommendations, which were released in September 2023. In turn, TNFD contributed to ISSB’s BEES initiative with a comprehensive presentation in February 2025.

Key Areas of Collaboration Under the MoU:

• Research & Expertise Sharing – Exchange of technical insights to strengthen reporting frameworks.
  
  
• Standards Enhancement – Joint efforts on SASB standards and ISSB’s BEES project.
  
  
• Market Engagement & Capacity Building – Coordinated outreach to improve adoption and implementation.
  
  

Due Process & Public Consultation – Ensuring transparency and stakeholder involvement in any standard-setting activities.

Additionally, TNFD will continue its market engagement and pilot testing efforts, advancing preparer guidance and addressing data quality and accessibility challenges. This partnership marks a significant step toward a more integrated and investor-focused sustainability reporting landscape.

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